WCT surges to near five-year high after linked-company Malton buys Genting Highlands land

• Malton said on Tuesday that it is acquiring 30.17 acres of freehold land in Genting Highlands from Global Oriental Bhd (KL:GOB) for RM65 million cash.

KUALA LUMPUR (July 3): Shares in WCT Holdings Bhd (KL:WCT) jumped to their highest in nearly five years on Wednesday after Malton Bhd (KL:MALTON), a company related to WCT's largest shareholder Tan Sri Desmond Lim Siew Choon, bought a piece of land in Genting Highlands to build serviced apartments and luxury villas.

WCT rose as much as 16.9%, or 15 sen, to RM1.04 in Wednesday's afternoon trade — its highest since August 2019. At market close, the stock had pared its gains to close at 98.5 sen, still up 9.5 sen or 10.7%, valuing the company at RM1.39 billion.

More than 111 million shares changed hands, more than double the four-week average volume of 53.33 million shares.

Lim is the largest shareholder of WCT, with an indirect stake of 18.15% through his private vehicle Dominion Nexus Sdn Bhd and a direct stake of 7.42%, followed by Amanah Saham Nasional Bhd with 5.82%. Lim is the executive chairman of WCT.

At the same time, Lim is the non-executive chairman of Malton. He is also a major shareholder of the property developer through his direct 4.29% stake in the company and indirect equity interest of 39.36% via Malton Corp Sdn Bhd.

Malton said on Tuesday that it is acquiring 30.17 acres of freehold land in Genting Highlands from Global Oriental Bhd (KL:GOB) for RM65 million cash. It said the planned development on the plot of land is expected to generate an estimated gross development value of RM1.29 billion.

WCT, on the other hand, saw its shares rally early last month, rising 54.2% from 59 sen to 91 sen in just a matter of 10 days. Research firms were increasingly bullish on WCT's future prospects, especially following its announcement two weeks ago of a significant highway contract win worth RM249.7 million.

WCT secured the contract from Projek Lebuhraya Usahasama Bhd to build additional lanes for the North-South Expressway (PLUS) expansion project. The contract was said to have boosted WCT’s year-to-date contract wins to RM750 million, growing its outstanding order book to RM3.2 billion.

Kenanga Research believes that WCT is poised for a better financial performance this year (FY2024), driven by upcoming public infrastructure projects, including the RM45 billion Mass Rapid Transit Line 3 (MRT3), Penang International Airport expansion, Pan Borneo Sabah Highway, Subang Airport Regeneration (RM3.7 billion) and various government hospital projects.

Hong Leong Investment Bank has raised its forecasts for WCT’s net profit for FY2025 by 3.2% and FY2026 by 3.5%, adjusting for higher contract win assumptions.

Of the nine analysts covering WCT, four have a “buy” call and five have a “hold” recommendation. The stock had surpassed its consensus 12-month target price of 80 sen last Wednesday (June 26), Bloomberg data showed.

Apart from its construction segment, WCT owns five shopping malls, namely the Bukit Tinggi Shopping Centre in Klang, the airport malls — gateway @ klia2 and SkyPark Terminal in Subang, Selangor — as well as Paradigm Mall in Petaling Jaya and Johor Bahru. The company also owns the Première Hotel in Klang, Le Méridien Petaling Jaya, and Hyatt Place Johor Bahru Paradigm Mall.

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